US Treasury Deputy Secretary Urges Congress for Tools to Tackle Crypto-Related Illicit Finance

cryptonews.com:

US Treasury Deputy Secretary Wally Adeyemo has urged Congress to provide regulatory tools to combat illicit finance related to cryptocurrencies. 

In a  hearing before the Senate Banking , Housing and Urban Affairs Committee, Adeyemo expressed concerns that terrorist groups, as well as state actors like Russia and North Korea, are increasingly using virtual currencies and digital assets to hide their identities and move resources.

While acknowledging some success in detecting illicit finance activities, Adeyemo emphasized the need to expand enforcement efforts to prevent such actions by “malign actors.”

“While we continue to assess that terrorists prefer to use traditional financial products and services, we fear that without congressional action to provide us with the necessary tools, the use of virtual assets by these actors will only grow,” he said.

Adeyemo highlighted the expanding use of virtual assets by these groups and warned that without congressional action, their adoption would continue to grow. 

He cited examples such as North Korea using complex cyber heists to acquire and launder illicit revenue, and Russia resorting to alternative payment mechanisms like the stablecoin tether to evade sanctions and finance its conflicts. 

To address these challenges, Adeyemo called on Congress to pass legislation that strengthens tools to target foreign digital asset providers facilitating illicit finance, including the imposition of secondary sanctions.

1/ Tomorrow, Dep. Sec. Adeyemo will testify before the Senate Banking Committee on the issue of illicit finance. With the Dep. Sec.'s primary focus on crypto's role in terror financing, we implore Congress to consider all of the facts.